🇮🇳 India · Recurring Deposit · FY 2025-26
RD Calculator India 2025-26: Returns, Rates & RD vs FD vs SIP
May 12, 20269 min readBy CalVerse
₹5,000/month in an RD for 5 years at 7% gives you ₹3.59 lakhs maturity on ₹3 lakhs invested — ₹59,000 in interest. But at the 30% tax slab, your post-tax maturity drops to ₹3.41 lakhs. Meanwhile the same ₹5,000/month in PPF gives ₹3.61 lakhs completely tax-free. The difference seems small — but understanding this is the difference between smart and average saving.
Best RD Interest Rates in India — 2025-26
Current RD Rates — General Public (FY 2025-26)
🏦 SBI Recurring Deposit6.5% — 1 to 10 years
🏦 HDFC Bank RD6.8% — 1 to 10 years
🏦 ICICI Bank RD7.0% — select tenures
🏦 Axis Bank RD7.2% — 1 to 5 years
🏣 Post Office RD6.7% — 5 year fixed
🏦 Kotak Mahindra RD7.4% — select tenures
🏦 Senior Citizen Rate+0.5% over general rate
📋 TDS on RD Interest
RD interest is fully taxable at your income slab rate. TDS is deducted at 10% if total interest across all deposits at one bank exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G if you are below 60 and total income is under ₹3 lakhs, or Form 15H if you are a senior citizen with income below the taxable limit — to avoid TDS deduction.
Exact RD Maturity — ₹5,000/Month at Every Tenure
At 7% interest rate — Axis Bank / ICICI current rate. What ₹5,000/month actually becomes:
| Tenure | Total Invested | Interest Earned | Maturity Amount | Post-Tax (30% slab) |
|---|
| 1 Year | ₹60,000 | ₹2,275 | ₹62,275 | ₹61,593 |
| 2 Years | ₹1,20,000 | ₹9,145 | ₹1,29,145 | ₹1,26,401 |
| 3 Years | ₹1,80,000 | ₹20,974 | ₹2,00,974 | ₹1,94,682 |
| 5 Years | ₹3,00,000 | ₹59,220 | ₹3,59,220 | ₹3,41,454 |
| 7 Years | ₹4,20,000 | ₹1,20,480 | ₹5,40,480 | ₹5,04,336 |
| 10 Years | ₹6,00,000 | ₹2,57,890 | ₹8,57,890 | ₹7,80,523 |
⚠️ The Tax Reality Check
At the 30% tax slab, ₹5,000/month RD for 10 years earns ₹2,57,890 in interest — but you keep only ₹1,80,523 after tax. The bank earns more from your money than you do in net interest after tax. This is why comparing RD post-tax returns with PPF and ELSS is essential before opening an RD account.
RD vs FD — Which Gives More Returns?
At the same interest rate, FD always gives higher total interest than RD — because in FD the full principal earns interest for the complete tenure, while in RD each monthly instalment earns interest only for its remaining period. The first deposit earns for the full tenure, the last deposit earns for just one month.
| Investment | Amount | Rate | Tenure | Maturity | Interest |
|---|
| FD (lump sum) | ₹3,00,000 | 7% | 5 years | ₹4,21,731 | ₹1,21,731 |
| RD (monthly) | ₹5,000/mo | 7% | 5 years | ₹3,59,220 | ₹59,220 |
| Difference | Same total invested | Same rate | Same tenure | FD wins by ₹62,511 | FD earns 2x more |
FD earns more than double the interest of RD on the same total investment. The reason: in FD your ₹3 lakhs works from day one. In RD your money comes in slowly over 5 years — the average deployment is roughly half the tenure. FD wins if you have a lump sum. RD wins if you're building savings month by month from salary.
Calculate your exact RD maturity
Enter your monthly deposit, bank rate and tenure — see maturity amount, interest earned and post-tax returns instantly.
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RD vs SIP — The Most Important Comparison for Salaried Indians
This is the real decision most Indians face — safe RD or equity SIP for monthly savings. Here's the honest comparison at ₹5,000/month:
| Option | ₹5K/mo · 5 Years | ₹5K/mo · 10 Years | ₹5K/mo · 15 Years | Risk |
|---|
| RD at 7% | ₹3.59L | ₹8.58L | ₹15.75L | Zero |
| PPF at 7.1% | ₹3.61L (tax-free) | ₹8.72L (tax-free) | ₹16.28L (tax-free) | Zero |
| SIP at 10% | ₹3.89L | ₹10.33L | ₹20.84L | Market risk |
| SIP at 12% | ₹4.12L | ₹11.62L | ₹25.23L | Higher risk |
✓ The Right Strategy for Most People
Don't treat RD and SIP as either/or. Use RD for your emergency fund and goals under 3 years — fixed deposits with predictable returns. Use SIP for goals 5 years and beyond — the market risk becomes manageable and returns significantly outpace RD. For the middle ground (3–5 years), PPF beats RD post-tax at the same effort. RD has its place — just don't use it as your primary long-term wealth builder.
SBI RD Calculator 2025-26 — SBI Recurring Deposit Complete Guide
SBI (State Bank of India) is the most popular bank for recurring deposits in India due to its government backing, wide branch network and YONO app convenience. Here is everything you need to know about SBI RD in FY 2025-26.
🏦 SBI RD Interest Rates FY 2025-26
General Public: 6.5% per annum for 1 year to 10 years (all tenures same rate)
Senior Citizens: 7.0% per annum (0.5% extra over general rate)
Compounding: Quarterly — interest compounded every 3 months
Minimum deposit: Rs 100 per month (no maximum limit)
Tenure: 1 year to 10 years in multiples of 3 months
Premature closure penalty: 0.5% reduction from applicable rate
SBI RD Maturity — Rs 5,000/Month at 6.5%
Exact maturity amounts for Rs 5,000/month SBI RD at 6.5% interest (quarterly compounding):
| Tenure | Total Invested | SBI Interest | SBI Maturity | Post-Tax (30%) |
|---|
| 1 Year | Rs 60,000 | Rs 2,113 | Rs 62,113 | Rs 61,479 |
| 2 Years | Rs 1,20,000 | Rs 8,487 | Rs 1,28,487 | Rs 1,25,941 |
| 3 Years | Rs 1,80,000 | Rs 19,432 | Rs 1,99,432 | Rs 1,94,130 |
| 5 Years | Rs 3,00,000 | Rs 54,842 | Rs 3,54,842 | Rs 3,35,454 |
| 7 Years | Rs 4,20,000 | Rs 1,11,290 | Rs 5,31,290 | Rs 4,93,503 |
| 10 Years | Rs 6,00,000 | Rs 2,38,340 | Rs 8,38,340 | Rs 7,66,838 |
SBI RD vs Other Banks
| Bank | Rate (General) | Rate (Senior) | Rs 5K x 5 Yrs | Min Deposit |
|---|
| SBI | 6.5% | 7.0% | Rs 3,54,842 | Rs 100/mo |
| Post Office | 6.7% | 6.7% | Rs 3,56,821 | Rs 100/mo |
| HDFC Bank | 6.8% | 7.3% | Rs 3,57,810 | Rs 1,000/mo |
| ICICI Bank | 7.0% | 7.5% | Rs 3,59,798 | Rs 500/mo |
| Axis Bank | 7.2% | 7.75% | Rs 3,61,796 | Rs 500/mo |
| Kotak Bank | 7.4% | 7.9% | Rs 3,63,813 | Rs 500/mo |
How to Open SBI RD Online via YONO App
- Open YONO SBI app or SBI NetBanking and go to Deposits then Recurring Deposit
- Select tenure (1-10 years) and monthly amount (minimum Rs 100)
- Choose savings account for auto-debit and set auto-debit date
- Confirm — account opens instantly, passbook available digitally
- Submit Form 15G or 15H if total RD interest is under Rs 40,000 to avoid TDS
Post Office RD vs Bank RD — Which is Safer?
Post Office RD is backed by the Government of India — zero credit risk, no DICGC limit concerns. Bank RDs are protected by DICGC insurance up to ₹5 lakhs per depositor per bank. For amounts under ₹5 lakhs, the higher bank rate (Kotak at 7.4% vs Post Office at 6.7%) usually wins. For larger amounts or maximum safety, Post Office RD is the clear choice.
RD Calculator India — Frequently Asked Questions
What is the SBI RD interest rate for 2025-26?
SBI recurring deposit interest rate for FY 2025-26 is 6.5% per annum for general public for all tenures from 1 year to 10 years. Senior citizens get 7.0% (0.5% extra). Interest is compounded quarterly. Rs 5,000/month for 5 years at SBI gives Rs 3,54,842 maturity on Rs 3,00,000 invested — Rs 54,842 interest before tax.
How do I calculate SBI RD maturity amount?
SBI RD maturity formula with quarterly compounding: M = R x [(1 + i/4)^(4n) - 1] / [1 - (1 + i/4)^(-1/3)] where R is monthly deposit, i is annual interest rate (6.5% = 0.065) and n is tenure in years. For Rs 5,000/month for 3 years: maturity = Rs 1,99,432. Use our free RD calculator for instant results without manual calculation.
Is SBI RD safe?
Yes — SBI RD is extremely safe. SBI is a government-owned bank and deposits are protected by DICGC insurance up to Rs 5 lakhs per depositor. For amounts above Rs 5 lakhs, SBI being a government bank provides additional confidence. SBI has never defaulted on deposits in its history. It is one of the safest places to park money in India alongside Post Office and government bonds.
Can I withdraw my RD before maturity?
Yes — most banks allow premature closure with a penalty of 0.5–1% reduction from the applicable rate. Post Office RD cannot be prematurely closed before 3 years under any circumstances. For bank RDs, check your specific bank's premature closure terms before opening. Emergency withdrawal is possible but costs you interest — set up an FD ladder instead if you need liquidity flexibility.
What happens if I miss an RD instalment?
Banks charge a penalty for missed RD instalments — typically ₹1.5 to ₹2 per ₹100 per month for private banks. SBI charges ₹1.5 per ₹100. If you miss too many consecutive instalments (typically 4–6 months), the RD account may be auto-closed at premature closure rates. Always set up auto-debit (NACH) from your savings account on RD due date to avoid penalties.
Is RD interest compounded quarterly or monthly?
In India, RD interest is compounded quarterly for most banks. The interest for each monthly instalment is calculated based on quarterly compounding and added to the running balance. This means your effective yield is slightly higher than the nominal annual rate. Post Office RD also uses quarterly compounding. Some banks compound monthly — always check the compounding frequency when comparing rates.
Is RD better than SIP for a 3-year goal?
For goals exactly 3 years away — yes, RD (or FD) is generally better than equity SIP. Equity markets can be significantly down at any specific 3-year point — you might need the money exactly when the market is 20–30% below peak. For 3-year goals, capital protection matters more than return maximisation. Use RD or short-term debt funds for 1–3 year goals. Shift to SIP for 5-year-plus goals where you have time to ride out volatility.
Can I open an RD account online in India?
Yes — all major banks allow online RD account opening through their net banking or mobile app. SBI allows RD opening via YONO app, HDFC via NetBanking, ICICI via iMobile. The account is linked to your savings account and auto-debit is set up immediately. Post Office RD can be opened at any post office branch or through India Post Payments Bank if you have an IPPB account. Online opening takes under 5 minutes for existing bank customers.